RPM International Inc (RPM)
Return on assets (ROA)
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 688,688 | 588,397 | 478,691 | 491,481 | 502,643 |
| Total assets | US$ in thousands | 7,775,950 | 6,586,540 | 6,782,000 | 6,707,710 | 6,252,970 |
| ROA | 8.86% | 8.93% | 7.06% | 7.33% | 8.04% |
May 31, 2025 calculation
ROA = Net income ÷ Total assets
= $688,688K ÷ $7,775,950K
= 8.86%
The analysis of RPM International Inc.'s Return on Assets (ROA) over the specified period reveals a pattern of fluctuation with a general trend of stability in recent years. As of May 31, 2021, the company's ROA stood at 8.04%, indicating a moderate level of efficiency in generating net income from its total assets. By May 31, 2022, this ratio decreased to 7.33%, reflecting a slight deterioration in asset utilization or profitability. The downward trend persisted into May 31, 2023, when the ROA further declined to 7.06%, signaling a continued, albeit gradual, reduction in asset efficiency.
However, a notable shift occurred by May 31, 2024, when the ROA increased to 8.93%, signifying an improvement in the company's ability to generate returns from its assets. This upward movement persisted into May 31, 2025, with the ROA reaching 8.86%, slightly below the recent peak but still substantially higher than the lows observed in the preceding years. The increase in ROA in 2024 and 2025 suggests enhanced operational efficiency or improved profitability, which may stem from strategic initiatives, cost control measures, or favorable market conditions.
Overall, RPM International Inc.'s ROA exhibited some variability over the examined period, characterized by a decline in the early years followed by a recovery and stabilization at higher levels. The recent trend indicates a positive trajectory in asset profitability, approaching or exceeding the levels observed at the start of the period. This shift may imply effective management and operational improvements, positioning the firm for potentially improved financial performance going forward.
Peer comparison
May 31, 2025